Monday, August 07, 2006

I got that feeling

SP cant seem to rally through 1280 and no one seems to know what the fed is going to do. Volatility is still not existent which - while I understand its summer is certainly surprising. People arent worried and I dont get it. I still have my tech holdings which Im going to peel out of (sell MSFT,DELL, INTC). I will also buy some more SDS which is trading around $70/sh (2x short the SP500) . I continue to hold my CFC and LUV puts.

Secondly with the Home builders index HGX starting to rebound up around 210 I think it might be a good time to start rolling into a new short position with some puts probably early 2007.

People are tapped, the consumer is done. Gas is going to crush everyone either through fueling their cars or having business/industry pass that cost onto the conusumer. Our government is spending everything we have - our taxpayers are aging and the burden is ending up on the young people. This has to play out and I feel like the next 6 months will be the first signs.